“Our research suggests that operational risk is now recognized as the most important risk by financial institutions. Also the scope of coverage for operational risk management processes and systems is increasing,” said Peyman Mestchian, Managing Partner at Chartis. “The SAS capabilities go beyond the traditional oprisk space covering such requirements as model risk, financial crimes, enterprise governance and compliance as part of a unified technology environment and was a key factor in our RiskTech Quadrant analysis.”

Chartis identified new quantification method demands from the market, exacerbated by the “extreme sensitivity of the loss distribution fitting process, together with the relative paucity of data.” SAS builds in risk capital calculation, including regulatory and economic models for operational risk, and can implement advanced modeling of operational risk exposures and capital requirements to support advanced measurement. The solution also integrates internal and external operational risk data.

“Rising costs due to regulatory fines and trading scandals has made operational risk a boardroom issue. Self-assessment of both qualitative and quantitative risk is more important than ever,” said Brooke Upton, Global Product Marketing Manager for Risk Management Solutions at SAS. “SAS OpRisk Global Data helps banks evaluate publicly reported losses and benchmark against firms of similar asset size and structure.”